Presented Below Is the Balance Sheet of Hal Company at January

question 76

Multiple Choice

Presented below is the balance sheet of Hal Company at January 1,2015: The balance sheet of Monty Company at January 1,2015 is below:
On January 1,2015,Monty Company acquired 100 percent of the outstanding common stock of Hal Company for $260 cash.The net income for the year ending December 31,2015 was $30 for Hal Company.The net income for the year ending December 31,2015 was $40 for Monty Company.There were no intercompany sales.What is the net income on the consolidated income statement for the year ended December 31,2015?

• A)$0
• B)$30
• C)$40
• D)$70

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, reflecting a company's desire to reinvest its profits.

Outstanding Shares

The total number of shares of stock that are currently owned by investors, including restricted shares owned by the company’s officers and insiders.

Distribution

The process of delivering products from the production or service facility to the end user, including storage, transportation, and logistics.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.